Sirius XM Holdings Inc
Q2 2026 Earnings
Market Reaction
Did SIRI Beat Earnings? Q2 2026 Results
Sirius XM Holdings delivered a mixed second quarter for fiscal 2026, posting earnings per share of $0.70 that fell short of the $0.78 consensus estimate by 10.76%, even as revenue of $2.16 billion edged ahead of expectations by 1.11% and grew 1.0% year-over-year. The most compelling storyline beneath the headline numbers was a genuine stabilization in the company's core subscription business, with the SiriusXM segment recording positive self-pay net additions of 22,000, a swing of 90,000 from the prior year's loss, driven by record-low monthly churn of 1.4%. That operational improvement fed through to adjusted EBITDA of $691.00 million, up 3% with margins expanding to 32%, and free cash flow surging 48% to $593.00 million. Investors had been closely watching subscriber trends heading into the print, given ongoing competition from streaming services, making the churn improvement particularly significant. Management rewarded the progress by raising full-year 2026 guidance across all three key metrics, now targeting revenue of approximately $8.53 billion, adjusted EBITDA of approximately $2.63 billion, and free cash flow of approximately $1.38 billion.
- Record-low self-pay monthly churn of 1.4% supporting subscriber retention
- Positive self-pay net additions of 22,000 driven by companion subscriptions adding 123,000 incremental net additions
- ARPU growth of 1% to $15.32 benefiting from February pricing actions
- Pandora advertising revenue up 5% driven by podcasting and programmatic demand
- Lower programming, legal, and personnel-related costs improving margins
- Lower cash taxes and favorable timing of vendor payments boosting free cash flow
- Continuous service initiative and dealer extended-duration plans supporting subscriber growth
“Since resetting our strategy, we've been focused on building a stronger, more durable SiriusXM, and our second-quarter performance demonstrates that strategy is delivering meaningful results. We achieved positive second-quarter self-pay net additions for the first time in four years, strengthened engagement and retention across our subscriber base, and continue to build momentum by delivering premium content and experiences that deepen our connection with listeners while creating new opportunities for advertisers. These results reflect disciplined execution and give us the confidence to raise our full-year guidance for revenue, Adjusted EBITDA, and free cash flow. We remain focused on creating long-term value by investing in the areas that strengthen our listener relationships and further differentiate SiriusXM.”
Sirius XM CEO, on the earnings call
Forward Guidance & Outlook
SiriusXM raised its full-year 2026 financial guidance by $25 million across all three metrics: total revenue of approximately $8.525 billion, Adjusted EBITDA of approximately $2.625 billion, and free cash flow of approximately $1.375 billion. Management expressed confidence in continued disciplined execution, noting the company has reached its long-term leverage target of 3.4x net debt-to-adjusted EBITDA and is well positioned to execute a balanced capital allocation strategy including investing in the business, maintaining financial flexibility, and returning capital to shareholders.
SIRI YoY Financials
SIRI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.